(HT)
Anil Ambani-promoted Reliance Defence has signed an agreement for a strategic partnership with Rheinmetall AG to supply ammunition to the Dusseldorf-based firm, the Reliance Group said on Thursday.
The German firm is linked to the company Rheinmetall Air Defence (RAD), Zurich, which was banned by the India defence ministry in 2012 following allegations of irregularities. It is still on the list of firms debarred from doing business with the government.
Reliance Defence will set up a manufacturing facility in the Watad Industrial Area of Ratnagiri, Maharashtra, to support the collaboration.
“The strategic partnership will strengthen India’s defence manufacturing capabilities aligning with the government’s flagship ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. It advances the vision of Prime Minister Narendra Modi to position India among the world’s leading defence exporters,” the company said in a statement.
Reliance Defence signed the agreement after checking the status of the foreign firm with the government and being told that there were no restrictions on exports and the ban covered only purchases by the Indian government, people aware of the matter said, asking not to be named.
The banned firms include Singapore Technologies Kinetics, Israel Military Industries, M/s Corporation Defence, Russia, M/s RK Machine Tools, Ludhiana, and M/s TS Kisan & Co, New Delhi.
This marks the third major partnership for Reliance Defence following its strategic alliances with Dassault Aviation and the Thales Group of France, the statement added.
“The collaboration between the companies will include supply of explosives and propellants for medium and large caliber ammunition to Rheinmetall by Reliance.”
